Stock Market Early Morning Insights – May 20, 2016

This market does not appear to be ready to roll over and die yet. Support held on all of the major indexes. The S&P 500 traded below short-term support for much of the day, but rallied to regain 2040 by the end of the day.

The NASDAQ composite and the other indexes are looking for direction and stock traders continue to get chewed up because of the directionless trade. The few positions that I currently have on are not making headway, nor are they collapsing, so I assume this is a similar experience for most who have trades on. In years past, we would just walk away from the market at times like this, and take a vacation. That may be good advice for the current market until a direction is established.

I’m amazed at the promotional emails I receive every day stating definitively that stocks are going to collapse, and these traders have already established their short positions. Maybe the market will collapse, but I certainly would not rely upon their advice to influence my observations.

It seems as if everyone is selling advice and their secret methods for conquering the market. I initially started following the markets closely back in the mid-80s, and I can definitively tell you that gurus come and go, and nobody knows what will happen for certain in the market. If they knew, they would not be selling advice, or indicators; they would keep this information to themselves and quietly making a fortune. Some traders do, and generally you don’t hear much about them. The truth is, it’s a lot easier to sell products and seminars then it has to make money in the markets.

With that said, I will be doing an online seminar soon, but it will not be about a black box software, or a secret sauce that only I know; it will be about how to get the most out of HGSI, the most insightful and versatile software product on the market.

There was no follow-through yesterday for the Biotech’s, and Gold Miners held their own after having a horrible day on Wednesday. Retail stocks bounced back thanks to Walmart’s earnings. There was some follow-through in the banking group, but it was not nearly as dominant as the prior day.

STOCK MARKET EARLY MORNING INSIGHTS

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